UDASIN SADGURU GANGESHWAR JANKALYAN TRUST,MUMBAI V. CIT (EXEMPTIONS), MUMBAI, MUMBAI

ITA 5867/MUM/2024

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The case involves the Udasin Sadguru Gangeshwar Jankalyan Trust, which appealed against the decision of the Commissioner of Income-tax (Exemptions), Mumbai, rejecting their application for regular registration under Section 80G of the Income-tax Act, 1961. The trust had initially received provisional registration and subsequently applied for regular registration, which was rejected due to non-compliance with documentary evidence requirements. The CIT(E)'s decision to reject the application was primarily based on a strict interpretation of CBDT Circular No. 7/2024, which the tribunal found to be overly restrictive. The tribunal decided to remand the case for a fresh evaluation on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32081 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANISH SAREEN
• Assessee Lawyers: ARVIND SINGH; WAY OF FILING DOCUMENTARY EVIDENCE; WAY OF FILING DOCUMENTARY EVIDENCE
• Section: 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “F” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND MS. KAVITHA RAJAGOPAL (JUDICIAL MEMBER) ITA No. 5867/MUM/2024 Assessment Year: 2024-25 Udasin Sadguru Gangeshwar Jankalyan Trust, 31/3, Agrawal House, D-Road, Churchgate, Mumbai-400020. Vs. CIT (Exemptions), Room No. 601, 6th floor, MTNL building, Cumballa Hill, Pedder Road, Dr. Gopalrao Deshmukh Marg, Mumbai-400026. PAN NO. AAATU 2926 P Appellant Respondent Assessee by : Mr. Arvind Singh Revenue by : Mr. Manish Sareen, CIT-DR Date of Hearing : 13/02/2025 Date of pronouncement : 14/02/2025 ORDER PER OM PRAKASH KANT, AM This appeal has been preferred by the assessee against order dated 17.10.2024 passed by the Ld. Commissioner of Income-tax (Exemptions), Mumbai, wherein the application of the assessee seeking regular registration u/s 80G of the Act was rejected. 2. Briefly stated facts of the case are that the assessee was granted provisional registration u/s 80 1961(In short ‘the Act’). B registration, the assessee applied for regular registration in Form No. 10AB under clause (iv)(b) of first proviso to section 80G(5) Act but said application of CIT(E) vide order dated 08.03.2024 the assessee by way of filing documentary evidence queries raised. Thereafter, again the assessee filed the present application which has under: “3. In this regard, it is noted that the CBDT circular No. 7/2024 dated 25.04.2024 vide para 4.1 permits filing of fresh application only in cases where the application was filed after due date or filed relevant para is reproduced as under: \"4.1 Further, in case where any trust, institution or fund has already made application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application i the extended time provided in paragraph 3(ii) i.e. 30.06.2024,\". 4. On perusal of the records, it is found that the applicant trust had earlier filed application in Form 10AB which was rejected on the ground of non of the fact that the application was furnished after the due Udasin Sadguru Gangeshwar Jankalyan ITA No. 5867/MUM/2024 Briefly stated facts of the case are that the assessee was granted provisional registration u/s 80G of the Income 1961(In short ‘the Act’). Before expiry of the said provisional registration, the assessee applied for regular registration in Form No. 10AB under clause (iv)(b) of first proviso to section 80G(5) but said application of the assessee was rejected CIT(E) vide order dated 08.03.2024 in view of non the assessee by way of filing documentary evidence Thereafter, again the assessee filed the present application which has been rejected by the Ld. CIT(E) observing as “3. In this regard, it is noted that the CBDT circular No. 7/2024 dated 25.04.2024 vide para 4.1 permits filing of fresh application only in cases where the application was filed after due date or filed under wrong section code. The relevant para is reproduced as under: \"4.1 Further, in case where any trust, institution or fund has already made application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 30.06.2024,\". 4. On perusal of the records, it is found that the applicant trust had earlier filed application in Form 10AB which was rejected on the ground of non-compliance and not of the fact that the application was furnished after the due Udasin Sadguru Gangeshwar Jankalyan Trust 2 ITA No. 5867/MUM/2024 Briefly stated facts of the case are that the assessee was Income-tax Act, efore expiry of the said provisional registration, the assessee applied for regular registration in Form No. 10AB under clause (iv)(b) of first proviso to section 80G(5) of the the assessee was rejected by the Ld. in view of non-compliance by the assessee by way of filing documentary evidence to the specific Thereafter, again the assessee filed the present been rejected by the Ld. CIT(E) observing as “3. In this regard, it is noted that the CBDT circular No. 7/2024 dated 25.04.2024 vide para 4.1 permits filing of fresh application only in cases where the application was under wrong section code. The \"4.1 Further, in case where any trust, institution or fund has already made application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may n Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 4. On perusal of the records, it is found that the applicant trust had earlier filed application in Form 10AB which was compliance and not on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code. It makes the assessee trust ineligible to apply again as per the circular 07/2024 dated 25.04.2024. In view of the same, this application for regularization of registration is not maintainable and the same is rejected.” 3. Having heard the rival submissions of the parties and upon perusal of the material on record, we find that the learned Commissioner of Inc assessee’s application primarily on the ground that, under a strict interpretation of CBDT Circular No. 7/2024 dated 25.04.2024, the assessee was not entitled to file a fresh application. The said circular permits the filing of a fresh application only in cases where the original application was submitted after the due date or under an incorrect section code. In our considered opinion, the purpose of the aforesaid circular is to afford applicants an additional opportunity to comply with the requirements under Section 80G of the Income-tax Act, 1961 (hereinafter referred to as \"the Act\"). In the present case, the assessee’s application was rejected on account of non-compliance with notices issued during the proceedings. I the interest of substantial justice, we find it appropriate that the assessee’s application be examined on its merits rather than being summarily rejected at the threshold. Accordingly, the matter is remanded to the file of the Ld. CIT(E) for a fresh det the assessee’s eligibility for registration under Section 80G(5) of the Act, in accordance with law. Udasin Sadguru Gangeshwar Jankalyan ITA No. 5867/MUM/2024 date or that the application has been furnished under the wrong section code. It makes the assessee trust ineligible to apply again as per the circular 07/2024 dated 25.04.2024. ew of the same, this application for regularization of registration is not maintainable and the same is rejected.” Having heard the rival submissions of the parties and upon perusal of the material on record, we find that the learned Commissioner of Income Tax (Exemptions) has rejected the assessee’s application primarily on the ground that, under a strict interpretation of CBDT Circular No. 7/2024 dated 25.04.2024, the assessee was not entitled to file a fresh application. The said filing of a fresh application only in cases where the original application was submitted after the due date or under an incorrect section code. In our considered opinion, the purpose of the aforesaid circular is to afford applicants an additional ty to comply with the requirements under Section 80G of tax Act, 1961 (hereinafter referred to as \"the Act\"). In the present case, the assessee’s application was rejected on account compliance with notices issued during the proceedings. I the interest of substantial justice, we find it appropriate that the assessee’s application be examined on its merits rather than being summarily rejected at the threshold. Accordingly, the matter is remanded to the file of the Ld. CIT(E) for a fresh det the assessee’s eligibility for registration under Section 80G(5) of the Act, in accordance with law. Udasin Sadguru Gangeshwar Jankalyan Trust 3 ITA No. 5867/MUM/2024 date or that the application has been furnished under the wrong section code. It makes the assessee trust ineligible to apply again as per the circular 07/2024 dated 25.04.2024. ew of the same, this application for regularization of registration is not maintainable and the same is rejected.” Having heard the rival submissions of the parties and upon perusal of the material on record, we find that the learned ome Tax (Exemptions) has rejected the assessee’s application primarily on the ground that, under a strict interpretation of CBDT Circular No. 7/2024 dated 25.04.2024, the assessee was not entitled to file a fresh application. The said filing of a fresh application only in cases where the original application was submitted after the due date or under an incorrect section code. In our considered opinion, the purpose of the aforesaid circular is to afford applicants an additional ty to comply with the requirements under Section 80G of tax Act, 1961 (hereinafter referred to as \"the Act\"). In the present case, the assessee’s application was rejected on account compliance with notices issued during the proceedings. In the interest of substantial justice, we find it appropriate that the assessee’s application be examined on its merits rather than being summarily rejected at the threshold. Accordingly, the matter is remanded to the file of the Ld. CIT(E) for a fresh determination of the assessee’s eligibility for registration under Section 80G(5) of the 4. In the result, the appeal of the assessee is accordingly allowed for statistical purposes. Order pronounced in the open Court on Sd/- (KAVITHA RAJAGOPAL JUDICIAL MEMBER Mumbai; Dated: 14/02/2025 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// Udasin Sadguru Gangeshwar Jankalyan ITA No. 5867/MUM/2024 In the result, the appeal of the assessee is accordingly allowed for statistical purposes. Order pronounced in the open Court on 14/02/2025. Sd/ (KAVITHA RAJAGOPAL) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai Udasin Sadguru Gangeshwar Jankalyan Trust 4 ITA No. 5867/MUM/2024 In the result, the appeal of the assessee is accordingly allowed /02/2025. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai "